U.S. Energy Expenditures Dropped to Nearly Two-Decade Low in 2020: EIA

U.S. consumers spent $1 trillion on energy expenditures in 2020, the lowest amount since 2002, according to an Aug. 29 report from the U.S. Energy Information Administration. Total energy expenditure is the sum of the entire amount consumed across all sectors, such as residential, industrial, commercial, and transportation. Energy consumption decreased by 7 percent from 2019-2020 because of COVID-19 mitigation efforts and warmer weather. The energy expenditures also fell during the same period because of a 10 percent drop in average energy prices, when adjusted for inflation.

The per capita energy expenditure in the U.S. declined 19 percent from 2019 to $3,039 in 2020. This marks the lowest U.S. energy expenditures per capita since 1999. The average per capita energy expenditure fell across all 50 states, with South Dakota posting a decline of 12 percent and Hawaii reporting a decline of 33 percent. In 2020, U.S. energy expenditures represented 4.8 percent of GDP, the lowest share since 1970.

The end-use energy expenditures for petroleum products, such as gasoline, diesel, and jet fuel stood at $503 billion in 2020, a 29 percent decline from 2019. However, petroleum still accounted for about 50 percent of all end-use energy expenditures in 2020. Electricity accounted for about 39 percent of the nation’s total energy expenditures, the second-highest end-use energy expenditure. About 11 percent, equivalent to $106 billion, of the total natural gas consumption, was dedicated to non-electricity-generating purposes, such as heating homes and buildings. Among the total energy expenditures, less than 1 percent, or $3 billion, came from coal used in metal manufacturing.

COVID-19’s impact on energy prices and mitigation efforts worldwide led to a unique year for energy expenditures in 2020. Energy prices were higher at the beginning of 2021 than they were at the beginning of 2020. The EIA is expected to publish 2021 energy expenditures, along with energy consumption data, in May 2023.